How my Spouse work will effect my tax?

Question

Hi I am working in US from January 2007. My sopuse just started working in November. How this will effect my tax filing. What should I do so that it does not effect my returns. My Spouse's salary is very less ( approx $700/Month) will the tax cost me more than this. Please suggest me. Thanks for your help in advance.

I do not care filing tax for my wife. I just care that will it effect my tax exumption. As anyway she is not earning in these two months and my exemption status will change for the entire year tax returns. Please suggest.

Answer 1

The additional income of $700 a month for two months in 2007 will not change the tax owed or refund by much.

If your spouse and you will be working the entire year of 2008, make sure your W-4 forms are accurate. Your tax preparer or payroll department can assist you.

Answer 2

Taxes are based on a percentage of income. What the percentage is depends on the total income, a range of which is called a bracket.
You need to consider if this will move you into a higher tax bracket, which depends on your total combined income. Find out your total income and look up which bracket you are in (or will be next month) and how close you are to the edge.

If she is making money, and you haven't passed the bracket, you might be able to stop or take a week off yourself and avoid a problem. If you are far from a bracket, don't worry.

If it is to late, you also have the option of married filing jointly, or seperately, and splitting your deductons. I can't remember if one of you could itemize and the other use standard deductions though. You should speak to a tax professional about that, as I'm not sure of how that will work in detail.

Answer 3

You two should have figured that our before she started working.
Her gross annual income will increase your total income thus increase the amount of taxes you are to pay for 2007. Since she is making very little, she is obviously not contributing enough in taxes to keep you two above water (not owing money).
You can either drop your withholdings down to a 0 or 1 to attempt to make up for it OR you can file Married filing separate.
Before 2008 starts, determine if her working is an actual financial expense over all.

Answer 4

No it will never cost you more than this.

You can file only as Married Filing Jointly or Married Filing Separately. It is always better to file as Married Filing Jointly.

It you file as Married Filing Separately, each will get deduction of $8,750. Your spouse will earn less than $8,750, so you are wasting the deduction amount.

If you file as Married Filing Jointly, then your total deduction (for both of you) is $17,500.

Also you need to understand how the tax rate works. Your total income above $17,500 is your taxable income. Here is the tax rate:

Rate of federal income tax on your taxable income for Married Filing Jointly

is over-- But not over-- The tax is:
$0 -- $15,650 -- 10% of the amount over $0
$15,650 -- $63,700 -- $1,565.00 plus 15% of the amount over 15,650
$63,700 -- $128,500 -- $8,772.50 plus 25% of the amount over 63,700
$128,500 -- $195,850 -- $24,972.50 plus 28% of the amount over 128,500
$195,850 -- $349,700 -- $43,830.50 plus 33% of the amount over 195,850

Answer 5

Whats the problem? the addition of your spouse income may increase your tax return. And if you don't know these things that you have to ask yahoo users (mostly teenagers) then please do not prepare your own taxes, go to a real CPA office and have them prepare it. a real CPA office, not these rip-off stands that give you money for your return.

Answer 6

It should effect you very little... you still file as married filing jointly (with her small income). You just have another W-2 to add.

Answer 7

You can not fall behind by making more money as we have a progressive tax system.